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Unformatted text preview: 1. Firms should use a process costing system when they produce products that: B. Pass through a series of manufacturing processes. 2. In process costing, unit product cost is calculated by dividing process cost in each department by the equivalent units produced: E. During the period. 3. In calculating unit cost in a process costing system, &quot;conversion cost&quot; is defined as the sum of: C. Direct labor and factory overhead costs. 4. The first step in determining process costs is: D. Analyzing physical flow of production units. 5. The fifth and final step in determining process costs is: E. Assigning cost to completed and uncompleted production. 6. The weighted-average method of process costing makes no distinction between the cost incurred prior to the current period and the cost incurred in: B. The current period. 7. The key difference between weighted-average and FIFO process costing methods is the handling of the partially completed: C. Beginning work-in-process inventory. 8. The advantage of the weighted-average method is its: E. Simplicity. 9. Which of the statements below is not correct? B. Normal spoilage is controllable in the short term and considered a part of product cost. 10. Process cost systems are used in all of the following industries except : B. Ship building. 11. Which of the following is not one of the key steps in determining process costs? E. Determining the cost pools and cost objects. 12. Which one of the following process costing methods combines both current and prior costs in determining cost per equivalent unit? D. Weighted-average method. 13. Which one of the following process costing methods includes only current costs in the calculations of cost per equivalent unit? A. FIFO method. 14. The sum of the beginning inventory units and the number of units started during the period determines the: B. Units to account for. 15. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: D. Units accounted for. 16. The journal entry to record the application of factory overhead would include a credit to: C. Factory Overhead. 17. When using the first-in, first-out method of process costing, equivalent units for work done during this period is equal to the number of units: A. In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period. 18. The percentage of completion of the beginning work-in-process inventory should be considered in the computation of the equivalent units for which of the following methods of process costing? B. B 19. In a given process costing system, the equivalent units are computed using the weighted-average method. With respect to conversion costs, the percentage of completion for the current period only is included in the calculation of the: C. C 20. From the industries listed below, which one is most likely to use process costing in accounting for production costs? 20....
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This note was uploaded on 09/15/2011 for the course FINANCE 101:50 taught by Professor Lombardi during the Spring '11 term at Rutgers.
- Spring '11